EDF Secures €1.25 Billion for Nuclear Fleet Lifespan Extension via Green Hybrid Bond
EDF, a leading European utility, has secured €1.25 billion through a green hybrid bond. The bond, structured to align with EU taxonomy, will fund the extension of France's nuclear fleet lifetimes. The issue, priced at 4.375% until 2031, is set to settle on October 6 on Euronext Paris.
EDF, known for its active issuance of hybrid debt, has once again tapped into the world market. This bond combines features of equity and bonds, allowing EDF to raise substantial sums while maintaining its credit ratings. The bond carries a provisional rating of B+ from S&P, Ba1 from Moody's, and BBB- from Fitch, with 50% equity content treatment. It has a first call date in 5.5 years.
The proceeds will be used to extend the lifetime of France's existing nuclear fleet, which currently accounts for around 70% of the country's electricity. This aligns with the government's energy strategy, which prioritizes extending reactor lifetimes. EDF regularly reviews capital market opportunities and adjusts its issuance strategy based on financing needs and stock market conditions. The latest issuance comes as green finance appetite remains strong, despite volatile markets, with hybrid green bonds gaining traction among European utilities.
EDF's €1.25 billion green hybrid bond issuance is a strategic move that supports France's energy policy and aligns with Europe's taxonomy rules. The funds will be used to reduce emissions from the existing nuclear fleet to 4 gCO2/kWh, demonstrating EDF's commitment to sustainable energy transition while ensuring energy sovereignty.
